GST Registration Cancellation Overturned: Petitioner Granted Fair Opportunity to Rectify Statutory Compliance and Reapply

HC allowed the writ petition challenging GST registration cancellation. The court remanded the matter to the respondent to reconsider the petitioner's case, directing submission of all statutory returns and emphasizing procedural fairness. The original cancellation order and appeal dismissal were set aside without imposing costs.

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Issues:
Petitioner seeks quashing of order cancelling GST registration and dismissing appeal due to belated filing.

Analysis:
The petitioner, a proprietary firm providing courier agency services, filed a petition under Article 226 seeking to quash the order cancelling its GST registration and the subsequent dismissal of the appeal. Respondent No.2 had issued a show cause notice regarding non-filing of returns for six months, leading to the cancellation of registration despite the petitioner's explanation. The appeal filed by the petitioner under Section 107 of the CGST Act was dismissed by respondent No.1 on the grounds of being filed belatedly. The issue raised in the writ petition was similar to a previous court decision, emphasizing the importance of timely appeals and the adverse effects of delays on the petitioner, especially when faced with cancellation of GST registration without a constituted GST Tribunal under Section 109 of the CGST Act.

The High Court, in line with the previous decision and considering the circumstances of the case, remanded the matter back to respondent No.2 to reconsider the petitioner's case and pass an appropriate order. The court highlighted the necessity for the petitioner to submit all returns as per the statute during the reconsideration process. Consequently, the court set aside the orders of both respondent No.2 and respondent No.1, directing respondent No.2 to review the petitioner's grievance against the cancellation of GST registration and make a decision in accordance with the law. The writ petition was disposed of without any costs, and any pending miscellaneous petitions were dismissed as a result of the judgment.

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